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The Bond Fund of America Annual Report
for the year ended December 31, 1994
Twentieth Anniversary
[The American Funds Group](R)
THE BOND FUND OF AMERICA (sm)
seeks as high a level of current income as is consistent with preservation of
capital through a diversified portfolio of bonds and other fixed-income
obligations.
RESULTS AT A GLANCE assuming dividends reinvested or interest compounded
<TABLE>
<CAPTION>
Average Annual Compound Rates of Return
12 months 5 years 10 years Lifetime
(1/1/94-12/31/94) (1/1/90-12/31/94) (1/1/85-12/31/94) (5/28/74-12/31/94)
<S> <C> <C> <C> <C>
The Bond Fund -5.0% +8.6% +10.6% +10.3%
of America
Lehman Brothers -3.9 +8.2 +10.6 + 9.9
Corporate Bond Index
Salomon Brothers -2.8 +7.8 +10.0 n/a/1/
Broad
Investment-Grade Bond
Index
Comparable Funds/2/ -4.6 +7.2 + 9.3 + 9.3
Rank versus 57 of 89 2 of 47 1 of 24 1 of 14
comparable funds/2/
Average savings +3.2 +4.7 + 5.9 + 7.1
institution/3/
Consumer Price Index/4/ +2.7 +3.5 + 3.6 + 5.6
</TABLE>
The bond market indexes are unmanaged.
/1/ This index was first introduced in 1980.
/2/ BFA's rank based on its total return versus comparable corporate A-rated
bond funds, according to Lipper Analytical Services.
/3/ Based on figures supplied by the U.S. League of Savings Institutions and
the Federal Reserve Board, which reflect all kinds of savings deposits,
including longer term certificates. Unlike investments in the fund, such
deposits are insured and, if held to maturity, offer a guaranteed return of
principal and a fixed rate of interest, but no opportunity for capital growth.
Maximum allowable interest rates were imposed by law until 1983.
/4/ Computed from data supplied by the U.S. Department of Labor, Bureau of
Statistics.
Fund results in this report were computed without a sales charge, unless
otherwise indicated. The fund's 30-day yield as of January 31, 1995, calculated
in accordance with the Securities and Exchange Commission formula, was 7.93%.
Fund results through August 1988 do not reflect service and distribution
expenses now paid under its Plan of Distribution. Such expenses may not exceed
0.25% of the fund's average net assets per year and currently amount to
approximately 0.21%.
THE FIGURES IN THIS REPORT REFLECT PAST RESULTS. SHARE PRICE AND RETURN WILL
VARY, SO YOU MAY HAVE A GAIN OR LOSS OF PRINCIPAL WHEN YOU SELL YOUR SHARES.
FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR INSURED OR GUARANTEED BY,
THE U.S. GOVERNMENT, ANY FINANCIAL INSTITUTION, THE FEDERAL DEPOSIT INSURANCE
CORPORATION, OR ANY OTHER AGENCY, ENTITY OR PERSON. All investments are subject
to certain risks. For example, those which include bonds are affected by
interest rate fluctuations. High-yield bonds tend to be subject to greater
price swings and default risks than higher rated bonds. Accordingly, investors
should maintain a long-term perspective.
FELLOW SHAREHOLDERS:
1994 was a special year for The Bond Fund of America. It marked the completion
of the fund's first two decades of investing, a period in which it outpaced
inflation, the broad unmanaged bond market indexes and comparable funds. 1994
also served as a reminder that BFA is a long-term investment and that years in
which the fund loses ground are inevitable.
Over the course of the year, BFA paid monthly dividends totaling $1.05 per
share. If you took your dividends in cash, you received an income return of
7.3%. If you reinvested your dividends, your income return was slightly
higher-7.5%-because of the benefit of compounding. The fund's total
return-taking into account dividends and the change in share value-was a
negative 5.0%. This ended BFA's remarkable string of 19 uninterrupted "up"
years with dividends reinvested.
The 89 comparable corporate bond funds tracked by Lipper Analytical Services
declined an average of 4.6% in 1994 with dividends reinvested. Meanwhile, the
unmanaged Lehman Brothers Corporate Bond Index and Salomon Brothers Broad
Investment-Grade Bond Index declined 3.9% and 2.8%, respectively, on a
reinvested basis.
BFA's investment results in 1994 are a reflection of the steep rise in interest
rates during the year. Because bond prices and interest rates move inversely to
one another, the rise in interest rates caused bond prices to decline. The
extent of the decline made 1994 the worst year for the bond market, except for
1967, since widely accepted measures of market results became available in the
mid-1920s.
During the year, we shortened the average maturity of the fund's holdings from
8.5 years to 6.4 years. This was designed to reduce the adverse impact of any
further increases in interest rates.
As we noted in our semi-annual report last summer, a major factor behind higher
short-term interest rates in 1994 was the Federal Reserve's desire to temper
economic growth to keep inflation low. The Fed first moved to raise interest
rates in February of last year, when it increased the federal funds rate-the
rate that banks charge each other for overnight loans-from 3.0% to 3.25%. This
was followed by five additional rate hikes, which brought this short-term rate
to 5.5% by the close of 1994. Longer term interest rates rose as well, partly
in response to the Fed's tighter monetary policy and partly due to concerns
about inflation and the demands for credit posed by strong economic growth. In
February of this year, the Fed again increased the federal funds rate, bringing
it to 6.0%.
Over the long term we believe prospects for the fund are bright. One of the
reasons we are optimistic is that we believe the current cyclical recovery is
overlapping a long-term low-inflation environment. Despite the recent decline
in bond prices, shareholders in the fund have been earning attractive "real,"
or inflation-adjusted, yields. Moreover, if you have been reinvesting your
dividends, you have been acquiring shares at lower prices, thereby enhancing
your prospects for longer term growth.
In the pages that follow, we take a closer look at the fund's first 20 years
and the lessons they provide about the nature of The Bond Fund of America. As
you will see, for shareholders with perseverance and patience, the fund has
proven to be a rewarding long-term investment through a variety of economic and
market conditions.
Cordially,
PAUL G. HAAGA, JR.
CHAIRMAN OF THE BOARD
ABNER D. GOLDSTINE
PRESIDENT
February 14, 1995
A 20-YEAR RETROSPECTIVE
OVER TIME, SHAREHOLDERS IN THE BOND FUND OF AMERICA HAVE SEEN HOW INCOME HAS
BEEN THE DRIVING FORCE IN CREATING ATTRACTIVE RETURNS.
When The Bond Fund of America was launched in May of 1974, the idea of a mutual
fund that would actively search for promising investments among fixed-income
securities was still viewed by many as something of a novelty. Bonds were
considered the province of wealthy individuals and institutions who, for the
most part, took a passive approach to fixed-income investing.
By the end of 1974, The Bond Fund of America had assets of $33 million and
nearly 2,600 shareholders. At the time, it was one of fewer than two dozen bond
funds that altogether had less than $1 billion in assets. Today BFA itself
holds approximately $5 billion in fixed-income securities on behalf of more
than 260,000 shareholders. It has grown to become one of the oldest, largest
and most successful bond funds in the country.
Over the past two decades, long-term shareholders in the fund have seen
recessions, oil shocks, high and low inflation, rising and falling interest
rates, and overhauls of the nation's tax laws too numerous to mention. Yet they
have also seen that The Bond Fund of America has been a rewarding long-term
investment through a variety of economic and market conditions. They have seen
how relatively stable income from bonds has compounded to create impressive
long-term returns and how over time bonds have provided a good foundation for
their financial programs. They have also learned a few lessons about the value
of patience and the importance of maintaining a long-term perspective.
One lesson brought home to shareholders early on is that bond prices fluctuate.
As interest rates change, the prices of existing bonds adjust to reflect the
new level of prevailing rates. Bond prices move inversely to interest
rates-when rates go down, bond prices go up and vice versa-much like an
old-fashioned seesaw. Bond prices, interest rates and the economy tend to
undergo cyclical fluctuations. The three, in fact, are linked. Interest rates
tend to rise with strong economic growth and decline when business activity
weakens.
Yet fluctuations in bond prices are only one part of the equation. The other
part-the driving part over the long haul-is your income return, which, by
contrast, tends to be much more stable and predictable. Bonds are first and
foremost income-producing investments. What BFA shareholders have found is that
income has, over time, played a dominant role in their overall returns.
To illustrate this point, let us examine three periods: BFA's first 10 years
from 1974 through 1984, during which interest rates often moved higher; BFA's
second 10 years from 1984 through 1994, during which interest rates for the
most part moved lower; and the entire 20-year period, during which interest
rates alternately rose and fell, ending up about where they began.
BFA'S FIRST DECADE
rising interest rates
<TABLE>
<CAPTION>
Period Beginning Distribution Ending Distribution Total Return Average Annual
Rate* (12/31/74) Rate* (12/31/84) Compound Return
<S> <C> <C> <C> <C>
1974-1984 8.0% 11.7% +164.8% +10.2%
</TABLE>
Shortly after BFA began operations in May of 1974, Richard Nixon resigned amid
the trauma of Watergate. An Arab oil embargo had created long lines at gas
stations across the country. Rising inflation and the energy shortage were
compounded by the worst recession since the 1930s. Yields on the long-term
bonds in BFA's portfolio began the decade around 8% and ended it in 1984 at
about 11.5%. In between, they rose substantially higher, reaching a peak of 15%
or so in the early '80s.
While BFA had a positive total return each year over this 10-year stretch, its
share price fluctuated sharply at times. Yet those who reinvested their
dividends (as about 80% of BFA shareholders currently do) received an
offsetting benefit from rising interest rates over the course of the full
10-year period. That is because their dividends acquired additional fund shares
at lower prices-shares that, in effect, earned them higher income returns. This
helped raise their overall income return as well as their total returns over
the 10-year period.
The lesson is an important one for long-term investors: Rising interest rates
caused bond prices to fall, which reduced total return over the short term. But
rising interest rates had the opposite impact on total return as the time
period lengthened. That is because reinvesting fund dividends through a period
of higher interest rates gradually increased the income return. Given enough
time, that higher income return helped offset the decline in share value. That,
in large measure, explains how BFA started the period with an 8% distribution
rate but ended up with a 10.2% average annual return. To quote Rousseau:
"Patience is bitter, but its fruit is sweet."
BFA'S SECOND DECADE
declining interest rates
<TABLE>
<CAPTION>
Period Beginning Distribution Ending Distribution Total Return Average Annual
Rate* (12/31/84) Rate* (12/31/94) Compound Return
<S> <C> <C> <C> <C>
1984-1994 11.7% 8.3% +173.5% +10.6%
</TABLE>
BFA's second decade stands in marked contrast to its first. Instead of moving
higher over the period, interest rates moved lower as the Federal Reserve
succeeded in bringing down inflation and keeping it low.
BFA's distribution rate at the end of 1984 was 11.7%. At the end of 1994, it
was 8.3%. One might have guessed that this would have been a much better period
to own bonds. It was better, but not by a large amount. Over this 10-year
period, the effect of reinvesting fund dividends in a declining interest rate
environment (at progressively lower yields) was offset by an increase in BFA's
share price brought on by that same decline in interest rates. As a result, BFA
earned a 10.6% total return as interest rates ended the period significantly
lower.
The countervailing impact on the fund's net asset value and its income return
from rising and falling interest rates has influenced BFA's total return, not
just during these two 10-year periods, but during every 10-year period over the
fund's lifetime. In some 10-year spans, rising interest rates caused the fund's
share price to decline, but gradually raised the income return; in others,
falling rates caused the fund's net asset value to rise, but gradually lowered
the fund's income return. Yet as you can see, during both "weak" bond markets
when interest rates moved higher and "strong" bond markets when interest rates
declined, BFA managed to deliver attractive 10-year annualized total returns
that ranged from +10.2% to +13.9%.
ROLLING 10-YEAR PERIODS OVER BFA'S LIFETIME
<TABLE>
<CAPTION>
10-Year Beginning Ending Total Annualized
Period Distribution Rate* Distribution Rate* Return Return
<S> <C> <C> <C> <C>
1974-1984 8.0% 11.7% +164.8% +10.2%
1975-1985 8.5 10.3 +197.6 +11.5
1976-1986 8.1 9.9 +190.1 +11.2
1977-1987 8.4 9.6 +181.4 +10.9
1978-1988 8.9 9.5 +205.3 +11.8
1979-1989 10.1 9.5 +225.9 +12.5
1980-1990 12.2 10.2 +225.1 +12.5
1981-1991 14.2 8.7 +269.0 +13.9
1982-1992 12.2 8.0 +209.1 +11.9
1983-1993 11.6 7.3 +222.3 +12.4
1984-1994 11.7 8.3 +173.5 +10.6
</TABLE>
The table below shows that over the full 20 years, BFA's distribution rate
ended the period about where it began. How did BFA end up with a 10.4% average
annual compound rate of return when bond yields at the beginning and end of the
period were 8% or so? The fund certainly benefited from a number of timely
adjustments in its maturity mix and good individual bond selection, but the
overriding force was the effect of reinvesting dividends when interest rates
were higher, as they were during a large part of the period. Over BFA's
lifetime, virtually all of the fund's return has come from income-and, for
shareholders who reinvest, the compounded income on that income.
BFA'S FIRST 20 YEARS
a full interest rate cycle
<TABLE>
<CAPTION>
Period Beginning Distribution Ending Distribution Total Return Average Annual
Rate* (12/31/74) Rate* (12/31/94) Compound Return
<S> <C> <C> <C> <C>
1974 - 1994 8.0% 8.3% +624.2% +10.4%
</TABLE>
[Side Bar]
*Annualized distribution rate based on net asset value.
[End Side Bar]
One option for individuals who wanted no interim fluctuations in the value of
their investments would have been to put their money into short-term
instruments such as bank certificates of deposit or Treasury bills where,
unlike the fund, principal is guaranteed. Yet it is important to note that the
tradeoff for this stability of principal was that income returns were much more
volatile and generally lower. The chart to the left displays the consistency
BFA has demonstrated in building annual income. It also shows the rewards of
having more money working for you when distributions are reinvested.
Of course, the income return from an investment in BFA is not fixed. It changes
over time as the bonds in the fund's portfolio are sold or mature and are
replaced by new ones with different rates of interest. But because the fund
invests in bonds with relatively long maturities, that income tends to change
relatively slowly.
This is not to say that investors should forgo short-term investments. Indeed,
intelligent investors hold CDs and money market funds as cash reserves to meet
unexpected expenses precisely so they won't have to sell long-term investments
at what may be an inopportune time. Individuals who rely exclusively on
short-term instruments to meet their long-range goals, however, face perhaps
the greatest risk of all: the risk that, after inflation and taxes, instead of
making progress toward their goals, they will fall farther and farther behind.
Still, investors might reasonably ask why they should put up with interim price
fluctuations in bonds in exchange for the potential of, say, a 1% or 2% or 3%
improvement in their returns over time. The reason is that even a small
improvement in returns can over the long term make a big difference. Over 20
years, for example, a $10,000 investment with an average compound return of 10%
a year grows to $67,275, compared with $46,610 at 8%. In this example, the
investor with the 2 percentage point higher annual return ended up with nearly
45% more at the end of the 20-year period.
For most shareholders, BFA is part of a diversified portfolio that contains
stocks as well as short-term savings. Indeed, many shareholders made the fund
an integral part of their overall financial plans because of the added
diversification it could provide.
Although the stock and bond markets both posted disappointing returns in 1994,
the two have often moved in different directions when stocks declined. As you
can see from the chart at left, BFA has done much better than the stock market
during all four of the major stock market declines of 13% or more over the
fund's lifetime. That diversification is one of the reasons many sophisticated
institutional investors, including corporations and universities, keep a
significant part of their assets in bonds. (Incidentally, there are more than
35,000 institutional investors in BFA, many with substantial accounts. All in
all, they represent about 20% of the fund's assets-some $1 billion.)
Ultimately, perhaps the best way to invest in BFA-or, for that matter, in any
long-term investment-is by making regular investments over time. The table on
the next page shows two scenarios over The Bond Fund of America's 20 1/2-year
lifetime. The first assumes that every calendar year you invested $5,000 in BFA
at the worst possible time-the day its share price hit the highest point of the
year. The second assumes that you put $5,000 into the fund at the best possible
time each year-the day its share price hit its lowest point of the year.
If you had invested at the worst possible time year after year, by December 31,
1994, the $105,000 you had invested would have grown to $325,178. If you had
invested at the best possible time, you would have had $348,631. That
relatively small difference in final results illustrates that it is time-and
not timing-that matters most.
Over the past 20 years, BFA shareholders have seen how bonds can help diversify
their financial programs. They have seen how, over the long haul, income has
been the driving force in creating attractive returns. But in order to earn
those returns, they have had to exhibit patience, perseverance and discipline.
In this sense, the most important ingredient to the success of their
investments in The Bond Fund of America has come from within themselves.
This is what would have happened if you had invested $5,000 a year over the
past 21 years on the worst possible day each year-the day BFA's share price
peaked...
<TABLE>
<CAPTION>
Date of Cumulative Value on
BFA's High Investment 12/31/1/
<S> <C> <C>
12/12/74 $5,000 $4,742
2/21/75 10,000 10,426
12/10/76 15,000 17,093
9/6/77 20,000 22,710
3/9/78 25,000 28,034
8/20/79 30,000 33,506
6/17/80 35,000 39,117
1/6/81 40,000 46,748
11/22/82 45,000 66,974
5/6/83 50,000 78,027
2/3/84 55,000 92,588
12/23/85 60,000 122,077
4/17/86 65,000 145,650
3/19/87 70,000 153,188
2/24/88 75,000 174,634
8/1/89 80,000 197,193
1/10/90 85,000 208,608
12/31/91 90,000 257,381
9/8/92 95,000 291,485
10/15/93 100,000 337,552
1/28/94 105,000 325,178
</TABLE>
...and this is what would have happened if you had made the same investments
on the best possible day each year - the day BFA's share price touched
bottom...
<TABLE>
<CAPTION>
Date of Cumulative Value on
BFA's Low Investment 12/31/1/
<S> <C> <C>
12/23/74 $5,000 $4,763
9/16/75 10,000 10,448
1/2/76 15,000 17,964
12/28/77 20,000 23,655
12/22/78 25,000 28,922
12/3/79 30,000 34,629
12/11/80 35,000 40,881
9/30/81 40,000 48,860
6/23/82 45,000 71,009
9/2/83 50,000 82,737
6/1/84 55,000 98,107
3/7/85 60,000 130,198
1/14/86 65,000 155,557
10/19/87 70,000 163,800
1/8/88 75,000 186,675
3/27/89 80,000 210,835
11/8/90 85,000 222,726
1/16/91 90,000 275,466
3/13/92 95,000 312,157
1/7/93 100,000 361,855
12/12/94 105,000 348,631
</TABLE>
/1/ Figures are based on the assumption that all investments were made at the
applicable sales charge and that dividends and capital gain distributions were
reinvested.
A regular investment program neither ensures a profit nor protects against
loss, and a potential investor should consider his or her ability to continue
purchases through periods of low prices.
THE BOND FUND OF AMERICA
INVESTMENT PORTFOLIO DECEMBER 31, 1994
<TABLE>
<CAPTION>
THE BOND FUND OF AMERICA Market Percent
Principal of
INVESTMENT PORTFOLIO DECEMBER 31, 1994 Amount Value Net
Assets
(000) (000)
<S> <C> <C> <C>
ELECTRICAL & GAS UTILITIES
UTILITIES: ELECTRICAL & GAS
Big Rivers Electic Corp. 10.70% 2017 $17,000 $18,610 .38%
CEZ Finance BV 8.875% 1999/1/ 3,000 2,977 0.06
CMS Energy 0%/9.50% 1997/2/ 2,000 1,860 0.04
Commonwealth Edison Co. 6.50% 2000 5,000 4,515 0.09
Coso Funding Corp. 8.87% 2001/1/ 7,500 7,215 0.15
Hero Asia (BVI) Co. Ltd. 9.11% 2001/1/ 5,000 4,826 0.1
Korea Electric Power Corp. 6.375% 2003 13,000 11,036 0.22
Long Island Lighting Co. 8.90% 2019 5,000 4,090 0.08
Midland Cogeneration Venture, LP 10.33% 2002 13,537 12,861 0.26
Midland Cogeneration Venture, LP, secured lease
obligation bonds, 10.33% 2002 7,209 6,849 0.14
Transco Energy Co. 9.125% 1998 2,000 2,002 0.04
Transco Energy Co. 9.625% 2000 2,000 2,030 0.04
Transco Energy Co. 9.375% 2001 5,800 5,829 0.12
United Illuminating Co. 9.76% 2006 5,388 5,455 0.11
---------- ---------
-
90,155 1.45
---------- ---------
-
INDUSTRIAL & SERVICE
AUTOMOBILES
General Motors Corp. 9.45% 2011 20,000 20,504 0.41
General Motors Corp. 8.80% 2021 50,000 51,191 1.04
---------- ---------
-
71,695 1.45
---------- ---------
-
BEVERAGES & TOBACCO
Canandaigua Wine Co., Inc. 8.75% 2003 5,000 4,550 0.09
Dr. Pepper Bottlng Co. of Texas 10.25% 2000 8,500 8,500 0.17
Dr. Pepper/Seven-Up Cos. 0%/11.50% 2002/2/ 5,572 4,416 0.09
RJR Nabisco, Inc. 8.75% 2004 5,000 4,606 0.09
RJR Nabisco, Inc. 8.75% 2005 4,000 3,647 0.07
RJR Nabisco, Inc. 9.25% 2013 6,000 5,396 0.11
---------- ---------
-
31,115 0.62
---------- ---------
-
BROADCASTING & PUBLISHING
Infinity Broadcasting Corp. 10.375% 2002 11,250 11,362 0.23
Marvel Holdings, Inc. 0% 1998 52,750 32,441 0.66
Univision Television Group, Inc. 11.75% 2001/1/ 5,500 5,748 0.12
Univision Television Group, Inc. 7.00% 2002/1/ 3,498 2,064 0.04
---------- ---------
-
51,615 1.05
---------- ---------
-
CONSTRUCTION & HOUSING
Del Webb Corp. 9.75% 2003 10,000 8,300 0.17
Kaufman & Broad Home Corp. 10.375% 1999 7,500 7,462 0.15
M.D.C. Holdings, Inc. 11.125% 2003 9,000 7,200 0.15
---------- ---------
-
22,962 0.47
---------- ---------
-
DATA PROCESSING & REPRODUCTION
Data General Corp. 7.75% convertible debentures 2001 8,000 6,920 0.14
Data General Corp. 8.375% 2002 1,250 1,084 0.02
Digital Equipment Corp. 7.125% 2002 6,500 5,377 0.11
Maxtor Corp. 5.75% convertible debentures 2012 2,000 1,050 0.02
Neodata Services, Inc. 0%/12.00% 2003/2/ 12,000 9,360 0.19
Unisys Corp. 15.00% 1997 4,000 4,280 0.09
---------- ---------
-
28,071 0.57
---------- ---------
-
DIVERSIFIED MEDIA & CABLE TELEVISION
Adelphia Communications Corp. 9.50% 2004 3,507 2,359 0.05
American Media Operations, Inc. 11.625% 2004 2,000 2,050 0.04
Bell Cablemedia PLC 0%/11.95% 2004/2/ 36,000 19,260 0.39
Cablevision Industries Corp. 10.75% 2004 1,000 1,000 0.02
Cablevision Industries Corp. 9.875% 2013 5,000 4,500 0.09
Century Communications Corp. 9.50% 2000 5,650 5,424 0.11
Century Communications Corp. 9.75% 2002 5,550 5,328 0.11
Comcast Corp. 10.25% 2001 11,000 10,780 0.22
Comcast Corp. 1.125% convertible debentures 2007 25,000 10,062 0.2
Continental Cablevision, Inc. 8.50% 2001 22,050 20,506 0.42
Continental Cablevision, Inc. 10.625% 2002 4,500 4,511 0.09
Continental Cablevision, Inc. 8.625% 2003 4,000 3,640 0.07
Continental Cablevision, Inc. 8.875% 2005 12,000 10,860 0.22
Continental Cablevision, Inc. 11.00% 2007 4,000 4,060 0.08
Continental Cablevision, Inc. 9.00% 2008 12,000 10,800 0.22
Continental Cablevision, Inc. 9.50 % 2013 13,000 11,895 0.24
Insight Communications Co. 8.25% 2000/3/ 11,250 10,575 0.21
International CableTel Inc. 0%/10.875% 2003/2/ 9,000 4,770 0.1
News America Holdings Inc. 9.125% 1999 7,000 7,056 0.14
News America Holdings Inc. 12.00% 2001 4,250 4,722 0.1
News America Holdings Inc. 8.625% 2003 7,000 6,809 0.14
News America Holdings Inc. 10.125% 2012 27,500 28,366 0.58
News America Holdings Inc. 9.25% 2013 15,000 14,592 0.3
News America Holdings Inc. 8.625% 2014 3,250 1,890 0.04
News America Holdings Inc. 8.45% 2034 10,000 9,592 0.19
Rogers Communications Inc. 10.875% 2004 3,500 3,552 0.07
Storer Communications, Inc. 10.00% 2003 12,087 11,362 0.23
Tele-Communications, Inc. 7.375% 2000 6,000 5,624 0.11
Tele-Communications, Inc. 10.125% 2001 2,500 2,613 0.05
Time Warner Inc. 7.95% 2000 5,000 4,687 0.09
Time Warner Inc. 9.625% 2002/1/ 21,000 21,181 0.43
Time Warner Inc. 10.15% 2012/1/ 10,000 10,063 0.2
Time Warner Inc. 8.875% 2012/1/,/3/ 5,000 4,548 0.09
Time Warner Inc. 0% convertible debentures 2012 100,000 30,500 0.62
TKR Cable I, Inc. 10.50% 2007 26,000 26,590 0.54
Turner Broadcasting System 0% 2007 15,000 5,888 0.12
Viacom International Inc. 9.125% 1999 5,000 4,950 0.1
Viacom International Inc. 10.25% 2001 1,600 1,636 0.03
Videotron Holdings PLC 0%/11.125% 2004/2/ 16,500 8,663 0.18
---------- ---------
-
357,264 7.23
---------- ---------
-
ELECTRICAL & ELECTRONICS
General Electric Co. 8.625% 2008 3,000 3,084 0.06
MagneTek, Inc. 10.75% 1998 7,500 7,500 0.15
Samsung Electronics Co., Ltd. 8.50% 2002/1/ 27,850 26,590 0.54
Westinghouse Electric Corp. 8.875% 2001 4,000 3,855 0.08
Westinghouse Electric Corp. 8.375% 2002 7,000 6,504 0.13
---------- ---------
-
47,533 0.96
---------- ---------
-
ENERGY & RELATED COMPANIES
BP America Inc. 10.00% 2018 4,000 4,339 0.09
California Energy Co., Inc. 0%/10.25% 2004/2/ 33,600 24,024 0.49
Global Marine Inc. 12.75% 1999 12,750 13,706 0.28
Maxus Energy Corp. 9.875% 2002 5,500 4,785 0.1
Occidental Petroleum Corp. 9.25% 2019 12,000 12,521 0.25
Oryx Energy Co. 9.30% 1996 6,000 5,975 0.12
Oryx Energy Co. 9.50% 1999 3,500 3,351 0.07
Petronas 6.875% 2003/2/ 6,000 5,378 0.11
Subic Power Corp. 9.50% 2008/1/ 8,448 7,244 0.15
---------- ---------
-
81,323 1.66
---------- ---------
-
FOOD RETAILING
Ralphs Grocery Co. 10.25% 2002 16,700 16,408 0.33
Ralphs Grocery Co. 9.00% 2003 4,000 3,880 0.08
Safeway Inc. 10.00% 2002 1,500 1,530 0.03
Smith's Food & Drug Centers, Inc., Series 94A2,
0%/8.64% 2012/2/ 12,000 11,046 0.22
Star Markets Co., Inc. 13.00% 2004/1/ 1,500 1,530 0.03
Stater Brothers Holdings, Inc. 11.00% 2001 9,500 8,883 0.18
Vons Companies, Inc. 9.625% 2002 8,000 7,840 0.16
---------- ---------
-
51,117 1.03
---------- ---------
-
FOREST PRODUCTS & PAPER
Container Corp. of America 9.75% 2003 38,000 36,290 0.74
Container Corp. of America 11.25% 2004 2,500 2,562 0.05
Fort Howard Corp. 9.25% 2001 7,750 7,246 0.15
Fort Howard Corp. 10.00% 2003 9,750 9,116 0.18
Fort Howard Paper Co. 8.25% 2002 3,000 2,685 0.05
Fort Howard Paper Co. 9.00% 2006 6,750 5,805 0.12
Grupo Industrial Durango SA de CV 9.6875% 1996/1/,/3/ 7,500 7,200 0.15
Klabin Fabricadora de Papel e Celulose SA 10.00% 2001 2,500 2,213 0.04
P.T. Indah Kiat Paper & Pulp Corp. 11.375% 1999/1/ 4,500 4,388 0.09
P.T. Indah Kiat Paper & Pulp Corp. 8.875% 2000/1/ 9,135 7,947 0.16
P.T. Indorayon Yankee 9.125% 2000 3,000 2,445 0.05
Pacific Lumber Co. 10.50% 2003 500 465 0.01
Riverwood International Corp. 10.75% 2000 12,000 12,210 0.25
Riverwood International Corp. 11.25% 2002 5,000 5,137 0.1
Riverwood International Corp., Series II 10.75% 2000 3,500 3,561 0.07
Tjiwi Kimia International Finance Co. 13.25% 2001 10,250 10,352 0.21
---------- ---------
-
119,622 2.42
---------- ---------
-
GENERAL RETAILING & MERCHANDISING
Allied Supermarkets Inc. 6.625% 1998 3,590 3,267 0.07
Ann Taylor 8.75% 2000 5,000 4,725 0.1
Barnes & Noble, Inc. 11.875% 2003/1/ 10,500 11,235 0.23
CompUSA, Inc. 9.50% 2000 6,000 4,980 0.1
Dayton Hudson Corp. 9.52% 2015 7,500 8,197 0.17
Dayton Hudson Corp. 9.35% 2020 6,000 6,528 0.13
Levitz Furniture Corp. 12.375% 1997 7,750 7,982 0.16
Payless Cashways, Inc. 9.125% 2003 7,000 6,265 0.13
Thrifty Payless, Inc. 11.75% 2003 11,500 11,270 0.23
Thrifty Payless, Inc. 12.25% 2004 1,500 1,410 0.03
Thrifty Payless, Inc. 12.25% 2004 5,000 5,050 0.1
---------- ---------
-
70,909 1.45
---------- ---------
-
HEALTH & PERSONAL CARE
FHP International Corp. 7.00% 2003 5,000 4,440 0.09
---------- ---------
-
LEISURE & TOURISM
Circus Circus Enterprises, Inc. 10.625% 1997 8,000 8,233 0.17
Embassy Suites, Inc. 8.75% 2000 3,000 2,820 0.06
Euro Disney S.C.A. 6.75% convertible debentures 2001 FF108,780 14,441 0.29
Foodmaker, Inc. 9.25% 1999 $12,200 10,370 0.21
Foodmaker, Inc. 9.75% 2002 4,300 3,268 0.07
Four Seasons Hotels Inc. 9.125% 2000 6,000 5,520 0.11
Host Marriott Hospitality, Inc. 9.125% 2000 5,833 5,753 0.12
Host Marriott Hospitality, Inc. 10.375% 2011 1,480 1,480 0.03
Kloster Cruise Ltd. 13.00% 2003 13,500 12,150 0.25
Six Flags Corp. 0% 1999 22,000 13,690 0.28
---------- ---------
-
77,725 1.59
---------- ---------
-
MACHINERY & ENGINEERING
Coleman Holdings, Inc. 0% 1998 3,500 2,354 0.05
Coltec Industries 9.75% 1999 7,000 6,860 0.14
Coltec Industries 9.75% 2000 7,500 7,350 0.15
John Deere Capital Corp. 8.625% 2019 9,150 9,296 0.19
---------- ---------
-
25,860 0.53
---------- ---------
-
METALS
Acme Metals Inc. 0%/13.50% 2004/2/ 9,000 6,075 0.12
Armco Inc. 11.375% 1999 12,000 12,000 0.24
ISPAT Mexicana (Euro) 10.375% 2001 4,650 3,976 0.08
ISPAT Mexicana 10.375% 2001/1/ 5,000 4,275 0.09
Kaiser Aluminum and Chemical Corp. 12.75% 2003 2,500 2,519 0.05
Pohang Iron & Steel Co., Ltd. 7.50% 2002 10,000 9,282 0.19
Tubos de Acero de Mexico, SA 13.750% 1999/1/ 2,500 2,363 0.05
USX Corp. 9.625% 2003 6,000 6,157 0.12
USX Corp. 0% convertible debentures 2005 40,000 17,500 0.35
USX Corp. 9.125% 2013 5,000 4,770 0.1
---------- ---------
-
68,917 1.39
---------- ---------
-
MISCELLANEOUS MATERIALS & COMMODITIES
Anchor Glass Container Corp. 10.25% 2002 3,000 2,850 0.06
Hyster-Yale Materials Handling, Inc. 12.375% 1999 447 469 0.01
Owens-Illinois, Inc. 11.00% 2003 7,000 7,263 0.15
Tolmex, SA de CV 8.375% 2003 5,500 3,960 0.08
---------- ---------
-
14,542 0.3
---------- ---------
-
MULTI-INDUSTRY
Hanson America, Inc. 144A 2.39% convertible
debentures 2001/1/ 40,000 28,600 0.58
Tenneco Inc. 7.875% 2002 3,000 2,851 0.06
Tenneco Inc. 10.00% 2008 8,720 9,543 0.19
---------- ---------
-
40,994 0.83
---------- ---------
-
OTHER
United States Banknote Co. 10.375% 2002 1,500 1,275 0.03
---------- ---------
-
TELECOMMUNICATIONS
Cellular Inc. 0%/11.75% 2003/2/ 10,500 6,930 0.14
CenCall Communications Corp. 10.125% 2004 33,500 11,725 0.24
Centennial Cellular Corp. 8.875% 2001 19,000 16,815 0.34
Comcast Cellular Corp., Series A, 0% 2000 23,500 15,862 0.32
Comcast Cellular Corp., Series B, 0% 2000 29,400 19,845 0.4
Dial Call Communications, Inc. 0%/12.25% 2004/2/ 38,750 13,562 0.27
GTE Corp. 8.85% 1998 9,500 9,591 0.19
Horizon Cellular Telephone Co., LP 0%/11.375% 2000/2/ 13,000 9,165 0.19
MFS Communications Co., Inc. 0%/9.375% 2004/2/ 35,000 21,000 0.43
MobileMedia Communications, Inc. 0%/10.50% 2003/2/ 14,600 7,884 0.16
NEXTEL Communications, Inc. 0%/11.50% 2003/2/ 56,000 21,840 0.44
NEXTEL Communications, Inc. 0%/9.75% 2004/2/ 60,000 21,000 0.43
Northern Telecom Ltd. 8.75% 2001 3,500 3,544 0.07
Paging Network, Inc. 11.75% 2002 11,675 11,675 0.24
Paging Network, Inc. 8.875% 2006 2,000 1,560 0.03
PanAmSat, LP PanAmSat Capital Corp. 0%/11.375% 2003/2/ 14,000 8,750 0.18
PanAmSat, LP PanAmSat Capital Corp. 9.75% 2000 9,800 9,237 0.19
PriCellular Wireless Corp. 0%/14.00% 2001/2/ 3,500 2,328 0.05
Rogers Cantel Mobile Communications Inc. 10.75% 2001 38,475 38,956 0.79
---------- ---------
-
251,269 5.1
---------- ---------
-
TEXTILES & APPAREL
VF Corp. 9.25% 2022 4,000 4,032 0.08
Westpoint Stevens Inc. 8.75% 2001 4,500 4,140 0.08
---------- ---------
-
8,172 0.16
---------- ---------
-
TRANSPORTATION
Air Wis Services, Inc. 7.75% convertible debentures 2010 4,000 2,440 0.05
Alaska Air Lyon 0% convertible debentures 2006 23,750 9,916 0.2
Alaska Airlines, Series A, 9.50% 2010 2,461 2,236 0.05
Alaska Airlines, Series B, 9.50% 2010 3,092 2,806 0.06
Alaska Airlines, Series C, 9.50% 2010 3,002 2,705 0.05
Alaska Airlines, Series D, 9.50% 2012 4,990 4,513 0.09
American Airlines, Inc., 1991-A, pass-through
certificates, 9.71% 2007/1/, 4 9,496 9,131 0.18
AMR Corp. 9.00% 2012 7,500 6,732 0.14
Delta Air Lines, Inc. 8.25% 1996 6,000 5,937 0.12
Delta Air Lines, Inc. 9.875% 2000 8,000 7,971 0.16
Delta Air Lines, Inc. 10.375% 2011 2,500 2,444 0.05
Delta Air Lines, Inc. 10.00% 2014/1/ 3,000 2,700 0.05
Delta Air Lines, Inc., pass-through certificates,
Series 1992-A2, 9.20% 2014/4/ 5,000 4,275 0.09
Delta Air Lines, Inc., pass-through certificates,
Series 1992-B1, 9.375% 2007/4/ 9,495 8,866 0.18
Federal Express Corp. 8.40% 2010 10,000 9,245 0.19
NWA, Inc. 8.625% 1996 5,000 4,800 0.1
Northwest Airlines, Inc. 12.0916% 2000/1/ 7,973 7,813 0.16
TNT Transport (Euro) PLC/TNT (USA) Inc. 11.50% 2004 4,750 4,774 0.1
United Air Lines, Inc. 10.67% 2004 4,500 4,532 0.09
United Air Lines, Inc. 9.125% 2012 5,000 4,330 0.09
United Air Lines, Inc., pass-through certificates,
Series 1993-A3, 8.39% 2011/4/ 7,500 6,315 0.13
Viking 9.625% 2003 7,000 6,510 0.13
---------- ---------
-
120,991 2.46
---------- ---------
-
FINANCE
BANKING & THRIFTS
Bank of Scotland 8.80% 2004/1/ 16,000 16,123 0.33
CalFed Inc. 10.00% 2003 846 753 0.02
Chevy Chase Savings Bank, F.S.B. 9.25% 2005 3,500 2,940 0.06
Coast Federal Bank 13.00% 2002 5,000 5,500 0.11
Coast Savings Financial, Inc. 10.00% 2000 6,500 6,110 0.12
First Federal Michigan Eurobond 0% 2005 10,000 4,206 0.09
First Nationwide 12.25% 2001 9,000 9,045 0.18
First Nationwide 10.00% 2006 5,850 5,843 0.12
Midland American Capital 12.75% 2003 12,150 13,816 0.28
Skandinaviska Enskilda Banken (N.Y. City) 6.875% 2009 5,000 4,162 0.08
State Bank of New South Wales Euronotes 10.375% 1999 3,000 3,221 0.07
Union Bank Finland Ltd. 5.25% 1996 3,000 2,873 0.06
---------- ---------
-
74,592 1.52
---------- ---------
-
FINANCIAL SERVICES
Beneficial Corp. 12.875% 2013 3,800 4,449 0.09
Fairfax Financial Holdings Ltd. 7.75% 2003 7,750 6,870 0.14
Ford Motor Credit Co. 9.50% 2000 7,350 7,637 0.15
General Electric Capital Corp. 8.875% 2009 8,000 8,200 0.17
General Motors Acceptance Corp. 6.70% 1997 8,000 7,704 0.16
General Motors Acceptance Corp. 7.00% 2000 5,000 4,681 0.09
General Motors Acceptance Corp. 9.625% 2001 6,500 6,827 0.14
General Motors Acceptance Corp. 8.75% 2005 10,000 10,000 0.2
General Motors Acceptance Corp. 8.875% 2010 2,500 2,504 0.05
General Motors Acceptance Corp. International,
medium-term note (Euro-Yen), 3.75% 1999 <UNDEF>1000000 9,719 0.2
New American Capital, Inc. 9.60% 1999/1/ 15,000 14,813 0.3
Xerox Credit Corp. 10.125% 1999 5,000 5,113 0.1
---------- ---------
-
88,517 1.79
---------- ---------
-
INSURANCE
American Re Corp. 10.875% 2004 46,000 48,662 0.98
---------- ---------
-
REAL ESTATE
B.F. Saul REIT 11.625% 2002 13,500 11,340 0.23
Beverly Finance Corp. 8.36% 2004/1/ 15,000 14,284 0.29
Corporate Property Investors 9.00% 2002/1/ 15,000 15,206 0.31
Corporate Property Investors 7.75% 2004/1/ 7,500 7,023 0.14
Shopping Center Associates 6.75% 2004/1/ 7,500 6,514 0.13
---------- ---------
-
54,367 1.1
---------- ---------
-
COLLATERALIZED MORTGAGE/ASSET-BACKED OBLIGATIONS/4/
(EXCLUDING THOSE ISSUED BY FEDERAL AGENCIES)
Capstead Securities Corp., collateralized mortgage
obligations, Series 1992-A, Class 10, 13.123% 2002 3,913 1,937 0.04
Capstead Securities Corp. IV, collateralized mortgage
obligations, Series 1992-4, Class J, 24.231% 2002/5/ 8,750 8,312 0.17
Chase Manhattan Bank, N.A., Series 93-I, Class 2A5,
7.25% 2024 10,000 9,175 0.19
Countrywide Funding Corp., Series 94-2, Class A-12,
9.50341% 2009/5/ 5,206 2,291 0.05
GCC Home Equity Trust, asset-backed certificates,
Series 1990-1, 10.00% 2005 5,667 5,678 0.11
G E Capital Mortgage Services,Series 1994-15, Class
A10, 6.00% 2009 16,376 12,814 0.26
G E Capital Mortgage Services, Series 1994-10, Class
A26, 9.152% 2024/5/ 6,009 1,562 0.03
Green Tree Financial Corp., pass-through
certificates, Series 1994-A, Class NIM, 6.90% 2004 4,118 3,922 0.08
Green Tree Financial Corp., pass-through
certificates, Series 1993-2, Class B, 8.00% 2018 2,250 1,993 0.04
Jet Equipment Trust Series 1994-A 10.91% 2006 7,000 7,014 0.14
MBNA Credit Card Trust, asset-backed certificates,
Series 1991-1, 7.75% 1998 11,000 10,921 0.22
Prudential Home Mortgage Securities Co., Inc.,
Series 1993-48, Class A-6, 6.25% 2008 4,466 3,594 0.07
Prudential Home Mortgage Securities Co., Inc.,
Series 1992-46, Class A-13, 10.682% 2008/5/ 4,431 2,171 0.04
Prudential Home Mortgage Securities Co., Inc.,
Series 1992-37, Class A-6, 7.00% 2022 2,500 2,416 0.05
Prudential Home Mortgage Securities Co., Inc.,
Series 1993-7, Class A-4, 8.00% 2003 9,323 9,011 0.18
Prudential Home Mortgage Securities Co., Inc.,
Series 1993-7, Class A-5, 8.00% 2003 7,336 7,276 0.15
Residential Funding Mortgage Securities I, Inc.,
Series 1992-S22, Class A-5, 8.00% 2005 221 220 0
Residential Funding Mortgage Securities I, Inc.,
Series 1993-48, Class A-10, 8.2331% 2008 4,598 2,391 0.05
Residential Funding Mortgage Securities I, Inc.,
Series 1991-S5, Class A-8, 9.225% 2021 83 83 0
Residential Funding Mortgage Securities I, Inc.,
Series 1992-S6, Class A-10, 15.333% 2022/5/ 10,124 7,897 0.16
Resolution Trust Corp., Series 1991-M5, Class B,
9.00% 2017 2,806 2,701 0.05
Resolution Trust Corp., Series 1992-C5, Class C,
8.85% 2022 10,404 9,832 0.2
Resolution Trust Corp., Series 1992-6, Class A-2B,
8.40% 2024 10,602 10,443 0.21
Resolution Trust Corp., Series 1992-C6, Class C,
8.00% 2024 7,257 6,595 0.13
Resolution Trust Corp., Series 1993-C1, Class D,
9.45% 2024 9,352 8,943 0.18
Resolution Trust Corp., Series 1993-C1, Class E,
9.50% 2024 1,042 992 0.02
Resolution Trust Corp., Series 1993-C2, Class C,
8.00% 2025 3,000 2,738 0.06
Resolution Trust Corp., Series 1993-C2, Class D,
8.50% 2025 3,290 3,075 0.06
Resolution Trust Corp., Series 1993-C2, Class E,
8.50% 2025 1,244 1,172 0.02
Ryland Mortgage Securities Corp., Series 1991-14,
Class F, 26.374% 2021/5/ 1,070 1,188 0.02
Sears Credit Account Trust, Series 1991-C, 8.65% 1998 20,000 20,162 0.41
Standard Credit Card Master Trust I, credit card
participation certificates, Series 1991-1A, 8.50% 1997 20,500 20,654 0.42
Standard Credit Card Master Trust I, credit card
participation certificates, Series 1994-2A, 7.25% 2008 5,000 4,563 0.09
Standard Credit Card Trust, credit card participation
certificates, Series 1990-3A, 9.50% 1998 5,000 5,136 0.1
Standard Credit Card Trust, credit card participation
certificates, Series 1990-6A, 9.375% 1998 9,500 9,737 0.2
Standard Credit Card Trust, credit card participation
certificates, Series 1991-3A, 8.875% 1999 11,000 11,223 0.23
Travelers Mortgage Services, Inc., pass-through
certificates, Series 1989-9, Class Z-2, 8.80% 2019 1,003 978 0.02
---------- ---------
-
220,810 4.45
---------- ---------
-
GOVERNMENTAL
GOVERNMENTS (EXCLUDING U.S. GOVERNMENT)
Argentina (Republic of) 8.37% 2003 14,000 9,975 0.2
Argentina (Republic of) 4.00% 2023 15,000 6,356 0.13
Argentina Bocon 4.3125% 2001 11,500 6,692 0.14
British Columbia Hydro & Power Authority 15.50% 2011/1/ 17,000 19,743 0.4
British Columbia Hydro & Power Authority 15.50% 2011/1/ 11,967 14,127 0.29
British Columbia Hydro & Power Authority 12.50% 2013/3/ 4,000 4,637 0.09
British Columbia Hydro & Power Authority 12.50% 2014/4/ 7,000 8,165 0.17
Canadian Government 8.75% 1996 C$40,000 28,541 0.58
Canadian Government 9.25% 1996 46,250 33,252 0.67
Canadian Government 10.50% 2001 3,000 2,280 0.05
Canadian Government 4.25% 2021 1,000 661 0.01
Italian Government National 8.50% 1999 ITL5,000,0 2,706 0.05
00
Italian Government National 8.50% 2004 3,200,000 1,601 0.03
Italian Government National 8.50% 2004 12,500,000 6,185 0.13
Italy (Republic of) 6.875% 2023 $20000 15,754 0.32
Manitoba (Province of) 9.25% 2020 5,000 5,252 0.11
National Bank of Hungary 8.80% 2002 3,500 3,080 0.06
Netherlands Government DFL 7.50% 2023 FL5,000 2,711 0.05
New South Wales Treasury 6.50% 2006 A$3,000 1,711 0.03
Nova Scotia (Province of) 7.25% 2013 $ 4000 3,384 0.07
Nova Scotia (Province of) 11.50% 2013 2,212 2,460 0.05
Ontario (Province of) 7.75% 2002 3,500 3,381 0.07
Ontario (Province of) 17.00% 2011 11,250 13,535 0.27
Ontario (Province of) 15.25% 2012 6,985 8,443 0.17
Ontario (Province of) 11.50% 2013 5,000 5,553 0.11
Petroleo Brasileiro S.A. 9.275% debentures 1998/3/ 7,500 7,613 0.15
Quebec (Province of) 13.25% 2014 5,500 6,672 0.14
Queensland Global Treasury Note 8.00% 2001 17,000 11,701 0.24
Queensland Global Treasury Note 12.00% 2001 5,000 4,190 0.08
Spain (Kingdom of) 11.45% 1998 PTA600,000 4,530 0.09
Spain (Kingdom of) 10.50% 2003 600,000 4,231 0.09
United Mexican States Government Eurobonds, Series A,
6.25% 2019 1,000 538 0.01
United Mexican States Government Eurobonds, Series B,
6.25% 2019 6,500 3,494 0.07
---------- ---------
-
253,154 5.12
---------- ---------
-
DEVELOPMENT AUTHORITIES
Inter-American Development Bank 8.875% 2009 10,000 10,585 0.21
International Bank for Reconstruction & Development
14.90% 1997 2,500 2,854 0.06
---------- ---------
-
13,439 0.27
---------- ---------
-
FEDERAL AGENCY OBLIGATIONS - MORTGAGE PASS-THROUGHS/4/
Federal Home Loan Mortgage Corp. 8.00% 2003-2010
Federal Home Loan Mortgage Corp. 8.00% 2003-2010
Federal Home Loan Mortgage Corp. 8.00% 2003-2010
Federal Home Loan Mortgage Corp. 8.00% 2003-2010
Federal Home Loan Mortgage Corp. 8.00% 2003-2010
Federal Home Loan Mortgage Corp. 8.00% 2003-2010 9,114 8,740 0.18
Federal Home Loan Mortgage Corp. 8.25% 2007
Federal Home Loan Mortgage Corp. 8.25% 2007
Federal Home Loan Mortgage Corp. 8.25% 2007 4,011 3,874 0.08
Federal Home Loan Mortgage Corp. 8.50% 2002-2020
Federal Home Loan Mortgage Corp. 8.50% 2002-2020
Federal Home Loan Mortgage Corp. 8.50% 2002-2020
Federal Home Loan Mortgage Corp. 8.50% 2002-2020
Federal Home Loan Mortgage Corp. 8.50% 2002-2020
Federal Home Loan Mortgage Corp. 8.50% 2002-2020
Federal Home Loan Mortgage Corp. 8.50% 2002-2020
Federal Home Loan Mortgage Corp. 8.50% 2002-2020
Federal Home Loan Mortgage Corp. 8.50% 2002-2020
Federal Home Loan Mortgage Corp. 8.50% 2002-2020 16,442 16,172 0.33
Federal Home Loan Mortgage Corp. 8.75% 2008
Federal Home Loan Mortgage Corp. 8.75% 2008
Federal Home Loan Mortgage Corp. 8.75% 2008
Federal Home Loan Mortgage Corp. 8.75% 2008
Federal Home Loan Mortgage Corp. 8.75% 2008 5,267 5,191 0.11
Federal Home Loan Mortgage Corp. 9.00% 2021 1,548 1,557 0.03
Federal Home Loan Mortgage Corp. 10.00% 2011-2019
Federal Home Loan Mortgage Corp. 10.00% 2011-2019
Federal Home Loan Mortgage Corp. 10.00% 2011-2019 960 1,001 0.02
Federal Home Loan Mortgage Corp. 10.75% 2010
Federal Home Loan Mortgage Corp. 10.75% 2010
Federal Home Loan Mortgage Corp. 10.75% 2010 220 235 0
Federal Home Loan Mortgage Corp. 11.50% 2000
Federal Home Loan Mortgage Corp. 11.50% 2000
Federal Home Loan Mortgage Corp. 11.50% 2000 79 84 0
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015
Federal Home Loan Mortgage Corp. 12.00% 2010-2015 2,542 2,749 0.06
Federal Home Loan Mortgage Corp. 12.50% 2009-2019
Federal Home Loan Mortgage Corp. 12.50% 2009-2019
Federal Home Loan Mortgage Corp. 12.50% 2009-2019
Federal Home Loan Mortgage Corp. 12.50% 2009-2019
Federal Home Loan Mortgage Corp. 12.50% 2009-2019
Federal Home Loan Mortgage Corp. 12.50% 2009-2019
Federal Home Loan Mortgage Corp. 12.50% 2009-2019
Federal Home Loan Mortgage Corp. 12.50% 2009-2019
Federal Home Loan Mortgage Corp. 12.50% 2009-2019 2,816 3,212 0.07
Federal Home Loan Mortgage Corp. 12.75% 2015-2019
Federal Home Loan Mortgage Corp. 12.75% 2015-2019
Federal Home Loan Mortgage Corp. 12.75% 2015-2019 963 1,095 0.02
Federal Home Loan Mortgage Corp. 13.00% 2014 80 92 0
Federal Home Loan Mortgage Corp. 13.50% 2018 50 58 0
Federal Home Loan Mortgage Corp. 13.75% 2014 40 45 0
Federal National Mortgage Assn. 7.00% 2013-2023
Federal National Mortgage Assn. 7.00% 2013-2023
Federal National Mortgage Assn. 7.00% 2013-2023
Federal National Mortgage Assn. 7.00% 2013-2023
Federal National Mortgage Assn. 7.00% 2013-2023
Federal National Mortgage Assn. 7.00% 2013-2023
Federal National Mortgage Assn. 7.00% 2013-2023
Federal National Mortgage Assn. 7.00% 2013-2023
Federal National Mortgage Assn. 7.00% 2013-2023
Federal National Mortgage Assn. 7.00% 2013-2023
Federal National Mortgage Assn. 7.00% 2013-2023 34,509 31,318 0.63
Federal National Mortgage Assn. 7.50% 2023-2024
Federal National Mortgage Assn. 7.50% 2023-2024
Federal National Mortgage Assn. 7.50% 2023-2024
Federal National Mortgage Assn. 7.50% 2023-2024
Federal National Mortgage Assn. 7.50% 2023-2024
FNCI POOL #286168 7.500% 06-01-09
FNCI POOL #292811 7.500% 10-01-09
FNCI POOL #292956 7.500% 10-01-09
FNCI POOL #294214 7.500% 10-01-09
FNCI POOL #296707 7.500% 10-01-09
Federal National Mortgage Assn. 7.50% 2023-2024 18,472 17,366 0.35
Federal National Mortgage Assn. 8.00% 2023
Federal National Mortgage Assn. 8.00% 2023
Federal National Mortgage Assn. 8.00% 2023 3,985 3,817 0.08
Federal National Mortgage Assn. 8.50% 2022-2023
Federal National Mortgage Assn. 8.50% 2022-2023
Federal National Mortgage Assn. 8.50% 2022-2023
Federal National Mortgage Assn. 8.50% 2022-2023 9,083 8,936 0.18
Federal National Mortgage Assn. 9.00% 2018-2025
Federal National Mortgage Assn. 9.00% 2018-2025
Federal National Mortgage Assn. 9.00% 2018-2025 6,020 6,051 0.12
Federal National Mortgage Assn. 11.00% 2015 213 229 0
Federal National Mortgage Assn. 11.25% 2014 110 118 0
Federal National Mortgage Assn. 11.50% 2010-2014
Federal National Mortgage Assn. 11.50% 2010-2014
Federal National Mortgage Assn. 11.50% 2010-2014 454 493 0.01
Federal National Mortgage Assn. 12.00% 2015-2019
Federal National Mortgage Assn. 12.00% 2015-2019
Federal National Mortgage Assn. 12.00% 2015-2019 229 251 0.01
Federal National Mortgage Assn. 12.50% 2015
Federal National Mortgage Assn. 12.50% 2015
Federal National Mortgage Assn. 12.50% 2015 508 559 0.01
Federal National Mortgage Assn. 13.00% 2014 67 77 0
Federal National Mortgage Assn. 13.25% 2015 28 32 0
Federal National Mortgage Assn. 15.00% 2013 99 114 0
Government National Mortgage Assn. 4.50% 2023-2024
Government National Mortgage Assn. 4.50% 2023-2024
Government National Mortgage Assn. 4.50% 2023-2024
Government National Mortgage Assn. 4.50% 2023-2024
Government National Mortgage Assn. 4.50% 2023-2024
Government National Mortgage Assn. 4.50% 2023-2024/3/ 159,115 144,758 2.93
Government National Mortgage Assn. 5.00% 2024
Government National Mortgage Assn. 5.00% 2024
Government National Mortgage Assn. 5.00% 2024
Government National Mortgage Assn. 5.00% 2024
Government National Mortgage Assn. 5.00% 2024
Government National Mortgage Assn. 5.00% 2024
Government National Mortgage Assn. 5.00% 2024/3/ 66,023 61,131 1.24
Government National Mortgage Assn. 5.50% 2024
Government National Mortgage Assn. 5.50% 2024
Government National Mortgage Assn. 5.50% 2024/3/ 1,921 1,809 0.04
Government National Mortgage Assn. 6.50% 2023-2024
Government National Mortgage Assn. 6.50% 2023-2024
Government National Mortgage Assn. 6.50% 2023-2024
Government National Mortgage Assn. 6.50% 2023-2024
Government National Mortgage Assn. 6.50% 2023-2024
Government National Mortgage Assn. 6.50% 2023-2024
Government National Mortgage Assn. 6.50% 2023-2024
Government National Mortgage Assn. 6.50% 2023-2024
Government National Mortgage Assn. 6.50% 2023-2024
Government National Mortgage Assn. 6.50% 2023-2024 38,758 33,587 0.68
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025
Government National Mortgage Assn. 7.00% 2022-2025 79,215 71,154 1.44
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2022-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2017-2024
Government National Mortgage Assn. 7.50% 2022-2024
Government National Mortgage Assn. 7.50% 2022-2024
Government National Mortgage Assn. 7.50% 2022-2024 58,614 54,417 1.1
Government National Mortgage Assn. 8.00% 2017-2023
Government National Mortgage Assn. 8.00% 2017-2023
Government National Mortgage Assn. 8.00% 2017-2023
Government National Mortgage Assn. 8.00% 2017-2023 4,167 4,013 0.08
Government National Mortgage Assn. 8.50% 2020 2,153 2,116 0.04
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2021
Government National Mortgage Assn. 9.00% 2016-2024
Government National Mortgage Assn. 9.00% 2016-2024
Government National Mortgage Assn. 9.00% 2016-2024
Government National Mortgage Assn. 9.00% 2016-2024
Government National Mortgage Assn. 9.00% 2016-2024 13,111 13,226 0.27
Government National Mortgage Assn. 9.50% 2017-2020
Government National Mortgage Assn. 9.50% 2017-2020
Government National Mortgage Assn. 9.50% 2017-2020
Government National Mortgage Assn. 9.50% 2017-2020 3,172 3,272 0.07
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019
Government National Mortgage Assn. 10.00% 2017-2019 3,665 3,852 0.08
Government National Mortgage Assn. 10.50% 2015-2019
Government National Mortgage Assn. 10.50% 2015-2019
Government National Mortgage Assn. 10.50% 2015-2019
Government National Mortgage Assn. 10.50% 2015-2019
Government National Mortgage Assn. 10.50% 2015-2019
Government National Mortgage Assn. 10.50% 2015-2019
Government National Mortgage Assn. 10.50% 2015-2019
Government National Mortgage Assn. 10.50% 2015-2019
Government National Mortgage Assn. 10.50% 2015-2019
Government National Mortgage Assn. 10.50% 2015-2019 1,224 1,305 0.03
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016
Government National Mortgage Assn. 11.00% 2013-2016 2,177 2,365 0.05
Government National Mortgage Assn. 11.50% 2015 82 90 0
Government National Mortgage Assn. 12.00% 2014 201 218 0
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015
Government National Mortgage Assn. 12.50% 2010-2015 1,388 1,559 0.03
Government National Mortgage Assn. 13.25% 2014
Government National Mortgage Assn. 13.25% 2014
Government National Mortgage Assn. 13.25% 2014 113 126 0
---------- ---------
-
512,464 10.37
---------- ---------
-
FEDERAL AGENCY OBLIGATION - OTHER
Federal Home Loan Bank Bonds 6.00% 1996 10,000 9,787 0.2
Federal Home Loan Bank Bonds 8.23% 2004 5,000 4,830 0.1
Federal Home Loan Bank Notes 6.41% 2003 3,685 3,178 0.06
Federal Home Loan Bank Notes 6.16% 2004 24,000 20,625 0.42
Federal Home Loan Bank Notes 6.27% 2004 5,000 4,341 0.09
Federal Home Loan Mortgage Notes 5.74% 2003 6,500 5,450 0.11
Federal Home Loan Mortgage Notes 6.185% 2003 13,100 11,381 0.23
Federal Home Loan Mortgage Notes 6.24% 2003 2,900 2,508 0.05
Federal Home Loan Mortgage Notes 6.28% 2003 3,000 2,559 0.05
Federal Home Loan Mortgage Notes 6.30% 2003 2,000 1,756 0.04
Federal Home Loan Mortgage Notes 6.375% 2003 5,820 5,136 0.1
Federal Home Loan Mortgage Notes 6.39% 2003 4,500 3,960 0.08
Federal Home Loan Mortgage Notes 6.50% 2003 6,200 5,413 0.11
Federal Home Loan Mortgage Notes 6.19% 2004 6,000 5,137 0.1
Federal Home Loan Mortgage Notes 6.27% 2004 2,500 2,163 0.04
Federal Home Loan Mortgage Notes 7.29% 2004 6,000 5,535 0.11
Federal National Mortgage Association Notes 6.30% 1997 15,000 14,255 0.29
Federal National Mortgage Association, medium-term note,
5.20% 1998 15,000 13,733 0.28
Federal National Mortgage Association, medium-term note,
5.30% 1998 12,500 11,438 0.23
Federal National Mortgage Association, medium-term note,
6.14% 2004 13,000 11,239 0.23
FNSM Callable Principal STRIPS 0%/8.25% 2022/2/ 4,500 2,945 0.06
---------- ---------
-
147,369 2.98
---------- ---------
-
COLLATERALIZED MORTGAGE OBLIGATIONS - FEDERAL AGENCIES/4/
Federal Home Loan Mortgage Corp., Series 1604, Class SA,
7.5067% 2008/5/ 2,000 1,015 0.02
Federal Home Loan Mortgage Corp., Series 1625, Class SC,
7.117803% 2008/5/ 3,000 1,515 0.03
Federal Home Loan Mortgage Corp., Series 1716, Claass A,
6.50% 2009 4,750 4,061 0.08
Federal Home Loan Mortgage Corp., Series 1082, Class B,
9.00% 2020 2,522 2,533 0.05
Federal Home Loan Mortgage Corp., Series 1574, Class AB,
6.50% 2023 4,338 2,533 0.05
Federal Home Loan Mortgage Corp., Series 21, Class GNMA
SE, 8.0309% 2023/5/ 4,000 1,598 0.03
Federal Home Loan Mortgage Corp., Series 1657, Class SA,
8.6026% 2023/5/ 7,520 2,999 0.06
Federal Home Loan Mortgage Corp., Series 1673, Class SA,
6.7691% 2024/5/ 7,879 2,718 0.06
Federal Home Loan Mortgage Corp., Series 1671, Class O,
16.3085% 2024/5/ 13,330 4,399 0.09
Federal National Mortgage Assn., Series 90-142, Class J,
9.25% 2003 5,000 5,028 0.1
Federal National Mortgage Assn., Series 91-146, Class Z,
8.00% 2006 5,793 5,400 0.11
Federal National Mortgage Assn., Series 93-229, Class SB,
7.134% 2008/5/ 4,000 1,600 0.03
Federal National Mortgage Assn., Series 93-78, Class SB,
9.054% 2008 3,412 1,842 0.04
Federal National Mortgage Assn., Series 93-107, Class SA,
9.6212% 2008/5/ 5,906 3,278 0.07
Federal National Mortgage Assn., Series 91-65, Class X,
6.50% 2019 18,473 14,940 0.3
Federal National Mortgage Assn., Series 90-93, Class G,
5.50% 2020 1,500 1,190 0.02
Federal National Mortgage Assn., Series G93-19SJ, Class I,
1.7647% 2023/5/ 467 119 0
Federal National Mortgage Assn., Series 93-130, Class SA,
10.9133% 2023/5/ 3,758 1,747 0.04
Federal National Mortgage Assn., Series 93-120, Class SB,
10.9134% 2023/5/ 5,828 2,928 0.06
---------- ---------
-
61,443 1.24
---------- ---------
-
U.S. TREASURY OBLIGATIONS
12.625% May 1995 15,000 15,340 0.31
8.875% February 1996 42,000 42,623 0.86
7.625% April 1996 30,000 30,052 0.61
9.375% April 1996 20,000 20,444 0.41
7.25% August 1996 20,000 19,884 0.4
8.00% October 1996 14,500 14,577 0.3
8.00% January 1997 63,000 63,325 1.28
8.50% April 1997 50,000 50,750 1.03
8.75% October 1997 7,500 7,669 0.16
8.875% November 1997 11,500 11,804 0.24
8.125% February 1998 207,000 208,586 4.22
9.25% August 1998 170,000 177,385 3.59
8.875% February 1999 21,000 21,735 0.44
9.125% May 1999 18,750 19,605 0.4
6.875% July 1999 42,000 40,425 0.82
8.875% May 2000 10,000 10,459 0.21
8.750% August 2000 25,000 26,023 0.53
8.50% November 2000 30,000 30,923 0.63
7.75% February 2001 5,000 4,980 0.1
13.125% May 2001 21,500 27,147 0.55
14.25% February 2002 7,000 9,399 0.19
6.375% August 2002 9,200 8,424 0.17
11.625% November 2002 70,000 85,093 1.72
11.625% November 2004 94,750 118,674 2.4
10.375% November 2009 7,000 8,127 0.16
14.00% November 2011 12,000 17,467 0.35
8.875% August 2017 31,500 34,315 0.69
6.25% August 2023 10,000 8,130 0.16
---------- ---------
-
1,133,365 22.93
---------- ---------
-
FLOATING RATE EURODOLLAR NOTES (UNDATED)/3/
Allied Irish Banks Ltd. 6.187% 10,000 8,500 0.17
Bank of Nova Scotia 5.437% 15,000 11,903 0.24
Bergen Bank 5.4375% 5,000 3,913 0.08
Canadian Imperial Bank of Commerce 3.875% 18,500 14,800 0.3
Christiana Bank Og Kreditkasse 6.3125% 6,000 4,725 0.1
Financiere Credit Suisse 3.4375% 8,000 6,440 0.13
Hongkong and Shanghai Banking Corp. 5.5625% 10,000 8,050 0.16
Lloyds Bank FRN (#2) 5.412% 5,000 4,263 0.09
Lloyds Bank FRN (#3) 6.187% 5,000 4,213 0.09
National Bank of Canada 2.7187% 5,000 3,400 0.07
Standard Chartered Bank 7.00% 15,000 11,400 0.23
Standard Chartered Bank 5.025% 5,000 3,800 0.08
---------- ---------
-
85,407 1.74
---------- ---------
-
EQUITY-TYPE SECURITIES & MISCELLANEOUS
EQUITY-TYPE SECURITIES/6/
California Federal Bank, Inc., Class A 2,002 21,768 0.44
Dial Page, Inc., warrants 39 5 0
Glendale Federal Bank, warrants expire 03/10/00 8 8 0
---------- ---------
-
21,781 0.44
---------- ---------
-
MISCELLANEOUS
ASH Capital Finance, Ltd. 9.50% 2006 4,500 4,625 #DIV/0
#N/A 12,500 3,687 #DIV/0
#N/A 3,500 2,415 #DIV/0
#N/A 20,000 6,800 #DIV/0
Investment securities in the initial period of
acquisition 17,527 0.35
---------- ---------
-
TOTAL BONDS, NOTES AND EQUITY-TYPE SECURITIES ---------- ---------
-
(cost $4,718,738) 4,370,463 88.12
---------- ---------
-
SHORT-TERM SECURITIES
COMMERCIAL PAPER
AIG Funding Inc. 5.80% due 1/3/95 20,000 19,990 0.4
AIG Funding Inc. 6.01% due 1/11/95 10,000 9,982 0.2
American Telephone and Telegraph Co. 5.45% due 1/12/95 25,000 24,953 0.51
Bayerische Landesbank Girozentrale 6.01% due 1/11/95 12,000 11,978 0.24
Beneficial Corp. 5.76% due 1/18/95 10,000 9,971 0.2
Beneficial Corp. 5.99% due 1/31/95 10,000 9,949 0.2
Beneficial Corp. 6.15% due 2/17/95 25,000 24,797 0.5
Commerzbank U.S. Finance Inc. 5.88% due 1/3/95 27,700 27,686 0.56
Deere & Co. 6.11% due 2/21/95 20,000 19,827 0.4
Eli Lilly & Co. 5.77% due 1/6/95 15,800 15,785 0.32
Ford Motor Credit Co. 6.03% due 1/5/95 15,000 14,988 0.3
Ford Motor Credit Co. 6.10% due 1/19/95 25,000 24,920 0.5
Ford Motor Credit Co. 5.81% due 1/20/95 23,350 23,275 0.47
Ford Motor Credit Co. 6.01% due 2/28/95 8,250 8,170 0.17
General Electric Capital Corp. 5.49% due 1/9/95 35,250 35,201 0.71
H.J. Heinz Co. 5.95% due 1/20/95 15,000 14,951 0.3
H.J. Heinz Co. 5.95% due 1/23/95 3,970 3,955 0.08
H.J. Heinz Co. 6.10% due 1/24/95 25,000 24,899 0.5
H.J. Heinz Co. 5.95% due 2/15/95 8,000 7,939 0.16
John Deere Capital Corp. 6.14% due 2/6/95 15,000 14,907 0.3
Kimberly-Clark Corp. 5.93% due 1/18/95 20,000 19,941 0.4
Miles, Inc. 5.80% due 1/19/95 20,000 19,939 0.4
Monsanto Co. 5.93% due 1/6/95 6,150 6,144 0.12
National Rural Utilities Cooperative Finance Corp. 5.94%
due 1/12/95 10,000 9,980 0.2
Texaco Inc. 6.02% due 1/17/95 20,000 19,944 0.4
U S WEST Communications, Inc. 5.47% due 1/17/95 5,300 5,286 0.11
U S WEST Communications, Inc. 5.99% due 2/22/95 7,000 6,938 0.14
Xerox Corp. 5.89% due 2/6/95 22,000 21,868 0.44
Xerox Corp. 6.12% due 2/10/95 23,600 23,437 0.47
---------- ---------
-
481,600 9.7
---------- ---------
-
Federal Agency Discount Notes
Federal Farm Credit Banks 5.94% due 1/11/95 10,000 9,982 0.2
---------- ---------
-
TOTAL SHORT-TERM SECURITIES (Cost $491,585) 491,582 9.9
---------- ---------
-
TOTAL INVESTMENT SECURITIES (cost $5,210,323) 4,862,045 98.02
Excess of cash and receivables over payables 79,105 1.6
---------- ---------
-
NET ASSETS 4,941,150 99.62
========== =========
</TABLE>
/1/ Purchased in a private placement transaction; resale
to the public may require registration.
/2/ Represents a zero coupon bond which will convert to
an interest bearing security at a later date.
/3/ Coupon rates may change periodically.
/4/ Pass-through securities backed by a pool of
mortgages or other loans on which principal payments
are periodically made. Therefore, the effective
maturity of these securities is shorter than the stated
maturity.
/5/ Represents an inverse floater, which is a floating
rate note whose interest rate moves in the opposite
direction of prevailing interest rates.
/6/ Non-income-producing security
See Notes to Financial Statements
The Bond Fund of America
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
December 31, 1994 (dollars in thousands)
Assets:
Investment securities at market
<S> <C> <C>
(cost: $5,210,323) $4,862,045
Cash 3,838
Prepaid expense ....................
Receivables for--
Sales of investments $19,418
Sales of Fund's shares 13,531
Dividends and accrued interest 86,501 119,450
------------ --------------
-
4,985,333
Liabilities:
Payables for--
Purchases of investments 29,639
Repurchases of fund's shares 11,087
Forward currency contracts 1,403
Management services 1,586
Accrued expenses 468 44,183
------------ --------------
-
Net Assets at December 31, 1994--
Equivalent to $12.69 per share on
389,436,473 shares of $1 par value
capital stock outstanding (authorized
capital stock - 500,000,000 shares) $4,941,150
==============
=
STATEMENT OF OPERATIONS
for the year ended December 31, 1994 (dollars in thousands)
Investment Income:
Income:
Interest 430,119
Dividends from investment in stocks 20 $430,139
------------
Expenses:
Management services fee 18,755
Distribution expenses 11,347
Transfer agent fee 3,751
Reports to shareholders 175
Registration statement and prospectus 146
Postage, stationery and supplies 301
Directors' fees 37
Auditing and legal fees 46
Custodian fee 293
Taxes other than federal income tax 81 34,932
------------ --------------
-
Net investment income $395,207
==============
=
Realized Loss and Unrealized
Depreciation on Investments:
Net realized loss (36,092)
Net unrealized depreciation on
Investments (624,178)
Open forward currency contracts (2,363)
------------
Net unrealized depreciation (626,541)
--------------
-
Net realized loss and
unrealized depreciation
on investments (662,633)
--------------
-
Net Decrease in Net Assets Resulting ($267,426)
from Operations ==============
=
STATEMENT OF CHANGES IN NET ASSETS (dollars in thousands)
Year ended December 31
1994 1993
Operations:
Net investment income $395,207 $352,923
Net realized gain(loss) on investments (36,092) 130,054
Net unrealized appreciation
(depreciation) on investments (626,541) 121,833
------------ --------------
-
Net increase (decrease) in net assets
resulting from operations (267,426) 604,810
------------ --------------
-
Dividends and Distributions Paid to
Shareholders:
Dividends from net
investment income (396,205) (348,157)
Distributions from net realized gain
on investments -- (137,077)
------------ --------------
-
Total dividends and distributions (396,205) (485,234)
------------ --------------
-
Capital Share Transactions:
Proceeds from shares sold:
99,296,409 and 127,144,414
shares, respectively 1,337,647 1,858,704
Proceeds from shares issued in
reinvestment of net investment
income dividends and distributions
of net realized gain on investments:
20,827,138 and 24,515,759 shares,
respectively 277,618 357,602
Cost of shares repurchased:
96,388,393 and 66,054,022
shares, respectively (1,295,101) (968,614)
------------ --------------
-
Net increase in net assets
resulting from capital share
transactions 320,164 1,247,692
------------ --------------
-
Total Increase (Decrease) in Net Assets (343,467) 1,367,268
Net Assets:
Beginning of year 5,284,617 3,917,349
------------ --------------
-
End of year (including
undistributed net investment
income: $10,433 and $10,941
respectively) 4,941,150 $5,284,617
============ ==============
=
</TABLE>
See Notes to Financial Statements
NOTES TO FINANCIAL STATEMENTS
1. Bond Fund of America (the "fund") is registered under the Investment
Company Act of 1940 as an open-end, diversified management investment company.
The following paragraphs summarize the significant accounting policies
consistently followed by the fund in the preparation of its financial
statements:
Bonds and notes are valued at prices obtained from a bond-pricing service
provided by a major dealer in bonds, when such prices are available; however,
in circumstances where the investment adviser deems it appropriate to do so,
such securities will be valued at the mean of their representative quoted bid
and asked prices or, if such prices are not available, at the mean of such
prices for securities of comparable maturity, quality and type. Securities
denominated in non-U.S. currencies are generally valued on the basis of bid
quotations. Equity-type securities are stated at market value based upon
closing sales prices reported on recognized securities exchanges on the last
business day of the period or, for listed securities having no sales reported
and for unlisted securities, upon last-reported bid prices on that date.
Short-term securities with original or remaining maturities in excess of 60
days, including forward currency contracts, are valued at the mean of their
quoted bid and asked prices. Short-term securities with 60 days or less to
maturity are valued at amortized cost, which approximates market value. The
maturities of variable or floating rate instruments are deemed to be the time
remaining until the next interest rate adjustment date. Securities for which
market quotations are not readily available are valued at fair value as
determined in good faith by the Valuation Committee of the Board of Directors.
As is customary in the mutual fund industry, securities transactions are
accounted for on the date the securities are purchased or sold. Realized gains
and losses from securities transactions are reported on an identified cost
basis. Interest income is reported on the accrual basis. Discounts on
securities purchased are amortized over the life of the respective securities.
The fund does not amortize premiums on securities purchased. Dividends are
declared on a daily basis after determination of the fund's net asset value and
are paid to shareholders on a monthly basis.
Investment securities, including forward currency contracts, denominated in
non-U.S. currencies are recorded in the financial statements after translation
into U.S. dollars utilizing rates of exchange on the last business day of the
year. Interest income from such investments is calculated using the
approximate exchange rate as accrued or when received. Purchases and sales of
investment securities and interest income are calculated using the approximate
exchange rate as accrued. The fund does not identify the portion of each
amount shown in the fund's Statement of Operations under the caption "Realized
Loss and Unrealized Depreciation on Investments" that arises from changes in
non-U.S. currency exchange rates.
Pursuant to the custodian agreement, the fund receives credit against its
custodian fee for imputed interest on certain balances with the with the
custodian bank. The custodian fee of $293,000 includes $111,000 that was paid
by credits rather than in cash.
2. It is the fund's policy to continue to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its net taxable income, including any net realized gain on
investments, to its shareholders. Therefore, no federal income tax provision
is required.
As of December 31, 1994, net unrealized depreciation on investments,
excluding forward currency contracts, for book and federal income tax purposes
aggregated $348,278,000, of which $29,860,000 related to appreciated securities
and $378,138,000 related to depreciated securities. During the year ended
December 31, 1994, the fund realized, on a tax basis, a net capital loss of
$36,090,000 on securities transactions. The fund has available at December 31,
1994, a net capital loss carryforward totaling $23,841,000 which may be used to
offset capital gains realized during subsequent years through 2002 and thereby
relieve the fund and its shareholders of any federal income tax liability with
respect to capital gains that are so offset. It is the intention of the fund
not to make distributions from capital gains while there is a capital loss
carryforward. The cost of portfolio securities, excluding foreign currency
contracts, for book and federal income tax purposes was $5,210,323,000 at
December 31, 1994.
3. The fee of $18,755,0000 for management services was paid pursuant to an
agreement with Capital Research and Management Company (CRMC), with which
certain officers and Directors of the fund are affiliated. The Investment
Advisory and Service Agreement provides for monthly fees, accrued daily, based
on an annual rate of 0.30% of the first $60 million of average net assets;
0.21% of such assets in excess of $60 million but not exceeding $1 billion;
0.18% of such assets in excess of $1 billion but not exceeding $3 billion; and
0.16% of such assets in excess of $3 billion ("asset-based fee"); plus 3.00% on
the first $450,000 of the fund's monthly gross investment income, plus 2.25% of
such income in excess of $450,000 ("income-based fee").
Pursuant to a Plan of Distribution, the fund may expend up to 0.25% of its
average net assets annually for any activities primarily intended to result in
sales of fund shares, provided the categories of expenses for which
reimbursement is made are approved by the fund's Board of Directors. Fund
expenses under the Plan include payments to dealers to compensate them for
their selling and servicing efforts. During the year ended December 31, 1994,
distribution expenses under the Plan were $11,347,000. As of December 31,
1994, accrued and unpaid distribution expenses were $829,000.
American Funds Service Company (AFS), the transfer agent for the fund, was
paid a fee of $3,751,000. American Funds Distributors, Inc. (AFD), the
principal underwriter of the fund's shares, received $4,562,000 (after
allowances to dealers) as its portion of the sales charges paid by purchasers
of the fund's shares. Such sales charges are not an expense of the fund and,
hence, are not reflected in the accompanying statement of operations.
CRMC is owned by The Capital Group, Inc. AFS and AFD are both wholly owned
subsidiaries of CRMC. Certain of the Directors and officers of the fund are or
may be considered to be affiliated with CRMC, AFS and AFD. No affiliated
officers, directors or employees of CRMC, AFS and AFD received any remuneration
directly from the fund.
4. As of December 31, 1994, accumulated undistributed net realized loss on
investments was $35,644,000 and paid-in capital was $4,926,606,000.
The fund made purchases and sales of investment securities, excluding
short-term securities, of $2,822,901,000 and $2,634,896,000, respectively,
during the year ended December 31, 1994.
The fund purchases forward currency contracts in anticipation of, or to
protect itself against, fluctuations in exchange rates. The contracts are
recorded at market value and reflect the extent of the fund's involvement in
these financial instruments. Risks may arise upon entering these contracts
from the potential inability of counterparties to meet the terms of their
contracts and from the possible movements in foreign exchange rates and
securities values underlying these instruments. The fund reclassified
$7,850,000 from undistributed net realized gains to undistributed net
investment income for the year ended December 31, 1994. At December 31, 1994,
the fund had outstanding forward currency contracts to sell non-U.S. currencies
as follows:
*****
<TABLE>
<CAPTION>
Contract Amount U.S. at 12/31/94
Valuations
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C>
Unrealized
Appreciation
Non-U.S. currency contracts Non-U.S. U.S. Amount (Depreciation
)
French Francs expiring 11/27/95 to 9/9/98 FF 70,000,000 $11,811,000 $13,051,000 ($1,240,000)
Great Britain Pounds expiring 5/19/95 GB 3,325,000 4,996,000 5,205,000 (209,000)
P
Japanese Yen expiring 11/22/95 <UNDEF> 1,000,000,000 10,582,000 10,492,000 90,000
Netherland Guilders expiring 6/8/95 FL 4,820,000 2,753,000 2,797,000 (44,000)
----------- ----------- ----------
$30,142,000 $31,545,000 ($1,403,000)
============ ============ ==========
</TABLE>
*****
Per-Share Data and Ratios
<TABLE>
<CAPTION>
Year Ended December 31
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of years $14.45 $13.99 $13.70 $12.39 $13.23
------- ------- ------- ------ -----
Income from investment operations:
Net investment income 1.05 1.09 1.15 1.21 1.24
Net realized and unrealized gain(loss) on investments (1.76) 0.84 0.34 1.28 (0.84)
------- ------- ------- ------ -----
Total from investment operations (0.71) 1.93 1.49 2.49 0.40
------- ------- ------- ------ -----
Less distributions:
Dividends from net investment income (1.05) (1.08) (1.16) (1.18) (1.24)
Distributions from capital gains -- (0.39) (0.04) -- --
------- ------- ------- ------ -----
Total distributions (1.05) (1.47) (1.20) (1.18) (1.24)
------- ------- ------ ------ -----
Net asset value, end of year $12.69 $14.45 $13.99 $13.70 $12.39
======== ======== ======= ====== =====
Total Return* (5.02%) 14.14% 11.34% 21.04% 3.27%
Ratios/supplemental data:
Net assets, end of period (in millions) $4,941 $5,285 $3,917 $2,859 $1,945
Ratio of expenses to average net assets .69% .71% .73% .77% .76%
Ratio of net income to average net assets 7.77% 7.53% 8.36% 9.28% 9.70%
Portfolio turnover rate 57.0% 44.7% 49.7% 56.5% 59.9%
</TABLE>
*This was calculated without deducting a sales charge. The maximum sales
charge is 4.75% of the fund's offering price.
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholders of
The Bond Fund of America, Inc.:
We have audited the accompanying statement of assets and liabilities,
including the investment portfolio, of The Bond Fund of America, Inc., as of
December 31, 1994, and the related statement of operations for the year then
ended, the statement of changes in net assets for the two years then ended, and
the per-share data and ratios for each of the five years in the period then
ended. These financial statements and the per-share data and ratios are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the per-share data and ratios based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
per-share data and ratios are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned at December 31, 1994 by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and per-share data and ratios
referred to above present fairly, in all material respects, the financial
position of The Bond Fund of America, Inc., at December 31, 1994, the results
of its operations, the changes in its net assets and the per-share data and
ratios for the respective stated years, in conformity with generally accepted
accounting principles.
/s/ Deloitte & Touche LLP
Los Angeles, California
January 27, 1995
THE BOND FUND OF AMERICA
BOARD OF DIRECTORS
H. FREDERICK CHRISTIE
Palos Verdes Estates, California
Private investor; former President
and Chief Executive Officer,
The Mission Group; former President, Southern California Edison Company
DIANE C. CREEL
Long Beach, California
Chairwoman, Chief Executive
Officer and President,
The Earth Technology Corporation
MARTIN FENTON, JR.
San Diego, California
Chairman of the Board,
Senior Resource Group, Inc.
(senior living centers management)
LEONARD R. FULLER
Los Angeles, California
President, Fuller & Company, Inc.
(financial management consulting)
ABNER D. GOLDSTINE
Los Angeles, California
President of the fund
Senior Vice President and Director,
Capital Research and Management Company
PAUL G. HAAGA, JR.
Los Angeles, California
Chairman of the Board of the fund
Senior Vice President and Director,
Capital Research and Management Company
HERBERT HOOVER III
Pasadena, California
Private investor
RICHARD G. NEWMAN
Los Angeles, California
Chairman of the Board, President and Chief Executive Officer, AECOM Technology
Corporation (architectural engineering)
PETER C. VALLI
Long Beach, California
Chairman of the Board and Chief Executive Officer, BW/IP International, Inc.
(industrial manufacturing)
OTHER OFFICERS
RICHARD T. SCHOTTE
Los Angeles, California
Senior Vice President of the fund
Senior Vice President,
Capital Research and Management Company
MARY C. CREMIN
Los Angeles, California
Vice President and Treasurer of the fund
Senior Vice President-Fund Business Management Group,
Capital Research and Management Company
MICHAEL J. DOWNER
Los Angeles, California
Vice President of the fund
Senior Vice President-Fund Business Management Group,
Capital Research and Management Company
JOHN H. SMET
Los Angeles, California
Vice President of the fund
Vice President,
Capital Research and Management Company
JULIE F. WILLIAMS
Los Angeles, California
Secretary of the fund
Vice President-Fund Business Management Group, Capital Research and Management
Company
KIMBERLY S. VERDICK
Los Angeles, California
Assistant Secretary of the fund
Compliance Associate-Fund Business Management Group,
Capital Research and Management Company
ANTHONY W. HYNES, JR.
Los Angeles, California
Assistant Treasurer of the fund
Vice President-Fund Business Management Group,
Capital Research and Management Company
LEONARD WEIL retired from the Board effective December 31, 1994. He has been a
member of the Board of Directors since 1987. The Directors thank him for his
many contributions to the fund.
DIANE CREEL and LEONARD FULLER were elected Directors effective September 22,
1994.
OFFICES OF THE FUND AND OF THE
INVESTMENT ADVISER, CAPITAL RESEARCH
AND MANAGEMENT COMPANY
333 South Hope Street
Los Angeles, California 90071-1443
135 South State College Boulevard
Brea, California 92621-5804
TRANSFER AGENT FOR SHAREHOLDER ACCOUNTS
American Funds Service Company
P.O. Box 2205
Brea, California 92622-2205
P.O. Box 659522
San Antonio, Texas 78265-9522
P.O. Box 6007
Indianapolis, Indiana 46206-6007
P.O. Box 2280
Norfolk, Virginia 23501-2280
CUSTODIAN OF ASSETS
The Chase Manhattan Bank, N.A.
One Chase Manhattan Plaza
New York, New York 10081-0001
COUNSEL
Morrison & Foerster
345 California Street
San Francisco, California 94104-2675
INDEPENDENT AUDITORS
Deloitte & Touche LLP
1000 Wilshire Boulevard
Los Angeles, California 90017-2472
PRINCIPAL UNDERWRITER
American Funds Distributors, Inc.
333 South Hope Street
Los Angeles, California 90071-1462
FOR INFORMATION ABOUT YOUR ACCOUNT OR ANY OF THE FUND'S SERVICES, PLEASE
CONTACT YOUR SECURITIES DEALER OR FINANCIAL PLANNER, OR CALL THE FUND'S
TRANSFER AGENT, TOLL-FREE, AT 800/421-0180.
This report is for the information of shareholders of The Bond Fund of America,
but it may also be used as sales literature when preceded or accompanied by the
current prospectus, which gives details about charges, expenses, investment
objectives and operating policies of the fund. If used as sales material after
March 31, 1995, this report must be accompanied by an American Funds Group
Statistical Update for the most recently completed calendar quarter.
Litho in USA AGD/AL
Lit. No. BFA-011-0295
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